Brent flat prices rocketed up this week on the back of returning of real geo political risk premium into markets. Simmering ME tensions after widening conflict between Saudis and Houthis, Prospectus of re-escalation of Iran war after US elections and an oil spillage at UAE facility are the headlines during this week.
Timespreads markets moved with crude prompt price structure curves into deep backwardation on lingering physical barrels tightness across. Prompt premium rose to $5 and brent DFLs to $10.
Refined product markets pulled back on easing of tightness. Diesel fell from steep upside momentum, still at high levels. Reports showed crude draws across all hubs incl US, ARA Europe and SG. Product stocks reportedly increased as per report on the back of SPR release. Gasoline spread prices came under pressure post the Iran war.
ICE market positioning data showed that Speculators are the net buyers of brent crude futures during week ending through Tuesday. Money managers raised their net length by 8752 to 241881. Longs widened by 13692 while shorts rose by 4840. Other repirtables netlength rose by 19564.
Fuel oil markets are volatile but largely firm during the week with HSFO and VLSFO diverging. Physical market tightness continued to support prompt premiums despite the forward curve remaining in contango. LPG markets are being supported with physical tightness amid prospectus of supply disruptions and seasonal blending demand. The butene premium over propane widened to $80 per Mt during the week. FO LDO prices are set to revise up in India for the first half of Nov, 2026 in India.
